SPD takes over Ministry of Finance

While the number of posts remains unchanged (CDU 5 ministers
+ Chancellery), the CSU 3 and the SPD 6) the distribution of portfolios is quite a
surprise. Probably as concession to the sceptics within the party, the SPD will
hold major portfolios in the new cabinet, namely the Foreign Office, the Ministry
of Labour and Social Affairs and most important the Ministry of Finance.

The Finance Minister has an outstanding position in the cabinet. All the
government’s budget relevant projects have to pass his office. Given his role as
a member of the Eurogroup and the ECOFIN which prepare and partly decide
on euro area and EU reforms, he can markedly shape Germany’s stance on
European policy.

Albeit these are important competences, it should not be
overlooked, however, that according to the German basic law, it is the
Chancellor’s power to set all policy guidelines. Especially with regard to
European policy, traditionally and even more in Merkel’s past terms, the
Chancellery has been the centre of power.